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Posts on this website are general "tips" and nothing more than that and should never be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. Sparty's posts nearly always relate to companies that he either holds, has held or intends to hold.
Main Forum•Mining Super Profits Tax
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BHP and RIO will deliver profits in 2011 that would make the Queen of England blush with embarrassment. Much of it will come from iron ore dug out of the ground and delivered to China for under $30/tonne and sold for well over $150 / tonne. Both will deliver well over 100Mt this year. In anyones terms this will provide a super profit for both companies. I hold shares in both of these companies and will get the benefit of these profits. But most Australians will not (superannuations aside). As good as these profits are for me and the superannuation funds it creates a dislocation in the Australian economy. As the mining shares do astonishingly well the price of the dollar rises due to higher wages (in the mining sector) and an influx of overseas money. As the $Au rises it becomes harder for Australian manufacturing to export and harder for Australian manufacturers to compete against imports. This is known as a 2 speed economy and it is greatly hurting most Australian manufactures right now (2011). A Mining Super Profits tax could be used to reduce the tax rate of ALL Australian companies by reducing the rate from 30% to 28%. This would help the major and minor mining companies as well as all in the manufacturing sector and all in small business. It just seems right.
The iron ore being dug out of the ground should benefit all Australians. We own the ore... not BHP or RIO. They just have the rights to mine it.
Your thoughts?
Alite.
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BHP and RIO's profits have been announced and they were record breaking. Australian business should benefit from those profits.
Alite
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The Greens have rejected an across the board tax cut from 30% to 29%. The money would come from the big miners and flow through to all... but the Greens say that it will not go to the people how pay the money: the big miners. A ridiculous position. They are a primary industry that make money for us all.
The 2 speed economy is here to stay. Australia will be a mine site. The profits from those mines need to be taxed to help keep manufacturing in Oz. Why keep Manufacturing in Oz? I have no answer
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- racksjackson
- July 2013
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I also agree with the last comment of Alite. Why keep Manufacturing in Oz? I also do not know.
